US Treasury yields drop on government shutdown, global growth concerns

U.S. government debt prices ticked higher on Thursday.

The yield on the benchmark 10-year Treasury note was in the red at around 2.733 percent at 3:35 a.m. ET, while the yield on the 30-year Treasury bond fell, trading at 3.048 percent. Bond yields move inversely to prices.

Investors remain on their feet ahead of a key interest rate decision by the European Central Bank.

Before the U.S. opening bell, the central bank will host another governing council meeting, where it will announce any fresh measures or comments. The meeting will be closely watched after the financial institution announced in December that it would formally end its multi-trillion bong-buying program at the end of 2018.

The ECB meeting comes less than a week before the U.S. Federal Reserve will host its two-day monetary policy meeting. No speeches are scheduled for Thursday.

On the data front, jobless claims are due out at 8:30 a.m. ET, followed by the U.S. composite purchasing managers’ index figures at 9:45 a.m. ET, and the Kansas City Fed survey at 11 a.m. ET.

The U.S. Treasury meantime is set to auction $45 billion in four-week bills and $35 billion in eight-week bills. The size of three bills, three notes and one floating rate note will also be announced during the day.

Elsewhere, investors will be keeping an eye on the ongoing government shutdown, which continues to trigger uncertainty across the U.S.

In the latest surrounding the topic, House Speaker Nancy Pelosi said on Wednesday that Democrats would block President Donald Trump from delivering his State of the Union address until the government reopened — an announcement that Trump complied with. Recent surveys have also indicated that voters want the shutdown to end, with new polls suggesting that Trump should compromise to end the partial closure.

Meantime, investors will be awaiting any further developments in regards to trade talks between China and the U.S.

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